The equities market reversed yesterday’s negative close as investors hunted for bargain in value stocks. Consequently, the All Share Index (ASI) gained 0.6% to close on Tuesday at 25,284.56 points whilst YTD loss eased to -5.9%. In the same vein, market capitalization rose N51.2m to settle at N8.8tn. Today’s positive performance was largely driven by bargain hunting in bellwethers across sectors - GUARANTY (+2.0%), ZENITH (+3.5%) SEPLAT (+5.0%), DANGCEM (+0.3%) and NIGERIAN BREWERIES (+0.7). Market activity also improved as volume and value traded increased 68.2% and 36.3% to close at 227.8m units and N928.5m respectively in 2,543 deals.
Industrial Goods Index Emerges Lone Loser
Sector performance largely mirrored the Benchmark index as all sector indices closed in the green save for the Industrial Goods index which closed lower due to selloffs in WAPCO (-4.9%). The Oil & Gas index (+2.4%) outperformed all other indices as gains in SEPLAT (+5.0%) and OANDO (+3.0%) drove the index northwards while the Banking index trailed with a 1.3% increase due to appreciation in GUARANTY (+2.0%) and ZENITH (+3.5%). Similarly, the Insurance index rose 0.4% on the back of CONTINSURE (+4.7%) and CUSTODYINS (+4.9%) whilst NIGERIAN BREWERIES (+0.7%) drove the Consumer Goods index (+0.3%).
Investor Sentiment Improves
Investor sentiment improved today as market breadth (advancers/decliners ratio) stood at 1.8x relative to 1.0x in the previous session on the back of 21advancing stocks against 12 decliners. The best performing stocks were AIRSERVICE (+9.6%), ETERNA (+7.7%) and SEPLAT (+5.0%) while NASCON (-5.0%), WAPCO (-4.9%) and HONYFLOUR (-4.8%) were the worst performers. Market performance today was dictated by bargain hunting as short term investors continue speculative activities. Nonetheless, we do not expect the bullish trend to persist and expect the market to trade sideways in tomorrow’s session as broader macroeconomic landscape continues to weigh on sentiment.